Five shale gas contracts to be signed soon

By Puspita Maylana Devi

The government said that out of the total 70 proposals for shale gas development it has received so far, five proposals have completed their joint study and will sign contract soon, a senior official said.

Acting Director General of Oil and Gas at the Energy and Mineral Resources Ministry, A. Edy Hermantoro said during his presentation at INDOGAS 2013 conference on Wednesday that state oil and gas company PT Pertamina was among the five companies that had completed their joint study. ?Pertamina and the other firms are expected to sign a contract of production cooperation (KKKS) soon,? he said.

Of the other 65 proposals, four are still conducting joint study, 30 are being processed, 21 will be soon processed to get approval for their joint study, while 10 others had been rejected due to incomplete application documents.

The development of shale gas, which is contained in Sumatera, Kalimantan, Java and Papua is regulated under the Energy and Mineral Resources Minister regulation, Permen ESDM No.05/2012 on the Procedures for Determining and Offering the Working Areas of Non-conventional Oil and Gas.

This year, the government will soon tender a number of other shale gas working areas, which include Blocks of North Tarakan, Berau, Kutai I and Kutai II in Kalimantan, and Blocks of Rama and Shinta in South Sumatra.

Editing by Benget Besalicto Tnb.